Users seeking to connect to Spark Protocol using a VPN will be unsuccessful, drawing condemnation from privacy advocates.
The decentralized finance pioneer MakerDAO has come under fire for preventing users of virtual private networks (VPNs) from accessing its new lending platform, Spark Protocol.
As of this writing, the Spark Protocol website returns an error to VPN users saying “Accessing this website via VPN is not allowed.”
According to the new terms of service for Spark Protocol, published on May 9, the move appears to be related to Maker’s attempt to prevent customers from the United States from accessing the crypto lending site.
DeFi analyst Chris Blec was among several who expressed “disgust” with the decision on Twitter on August 6. Blec pointed out that the move basically amounts to a worldwide ban on VPNs, not simply one in the United States.
“It’s one thing to block US residents,” Blec added, “but it’s a whole other thing to block anyone in the entire world who is using a VPN for privacy,” calling it a “actual war on privacy.”
In a rebuttal tweet, Blec, who describes himself as a “decentralization and privacy advocate,” alleged that MakerDAO’s founder Rune Christensen and the company’s other developers put profit before user privacy.
The developers’ focus on making money rather than doing what’s right is at the heart of this issue. Their bank balance is more important than your rights and privacy.
Introduced in May, the Spark Protocol promises investors annual returns of up to 8% on their DAI loans. Phoenix Labs, a blockchain research and development organization founded by the Maker Foundation, developed the lending platform as a soft fork of Aave V3.
Lending cryptocurrency in Spark Protocol requires users to confirm they are not and will not be using a virtual private network.
Wallets on Spark Protocol allegedly using illegal activities would be blocked using TRM’s blockchain intelligence services.